The following list provides information on frequently asked questions.

DOWN PAYMENT Currently, a minimum of 20% down payment is required on rental properties. Since a 20% down payment is applied, rental properties can qualify for 30-year amortization as it doesn't trigger mortgage insurance. Can I use equity in my current owner occupied home to purchase a rental property? Yes, you can! Book an initial chat here so we can look at your specific situation. Can I use gifted funds for a down payment on a rental property? In most cases, lenders will not consider a gifted down payment for a rental property. However if you are considering using gifted funds, there may be options available. Can I borrow from my HELOC to pay the down payment in part or full? Yes. Lenders will consider all of your liabilities and apply this to your debt servicing ratios.

HOW MUCH CASH WILL I ACTUALLY NEED? Down Payment + Property Transfer Tax (PTT) + Closing Costs = Cash Required Up Front 

WHY CO-SIGNERS? With house prices increasing, government qualifying rules tightening, and income documentation becoming more onerous from banks and lenders, more and more Canadians are enlisting the help of a Co-Signer (or co-purchaser, these titles can be used interchangeably) to make the purchase of a home possible. A Co-Signer helps support the income qualification on paper for an applicant, by going on the property title and mortgage as well.

LAND  For a fully serviced lot , you will need down payment of at least 25% on the land value. Fully serviced means the lot has power, water/well & sewer/septic. For a partially serviced lot , you will need a down payment of at least 35% on the land value. Partially serviced means the land is missing at least one of the above services. Already own the land? An equity take out may be completed on the land as your first draw, up to 75% of the appraised land value , less fees.

WHAT IS A CREDIT SCORE? A credit score is a three digit number designed to predict the likelihood that an individual will pay their bills as agreed upon. It is a tool available for financial institutions to determine your creditworthiness. In Canada, there are two companies that provide credit adjudication, Equifax & TransUnion. Consumer facing scores and lender facing scores are often different as they are taking into consideration different modeling data. Don't be surprised if they vary.

EARLY IN THE PROCESS Dividing assets and navigating this stressful process takes time. While still in the midst of sorting things out, remember to continue making existing mortgage payments . All parties on a mortgage and title are responsible for regular payments being made on time, even during a separation or divorce. This applies to other joint bills as well.

WHAT DOES "MORTGAGE MATURITY" MEAN? A mortgage maturity occurs at the end of your mortgage term. Mortgage terms are generally around 5 years, but can range anywhere from 1 to 10 years. At the end of your term, you are required to renew your mortgage into a new term and new interest rate. You can either complete this by signing your renewal offer from your existing lender or can explore your options elsewhere.